11 Intangible Assets including Intangible Insurance Assets

In CHF million  
  30.06.2011 31.12.2010
Intangible insurance assets
  2 085 2 033
Other intangible assets
  1 919 1 949
Total intangible assets
  4 004 3 982


Intangible insurance assets
In CHF million  
  Present value of future profits from acquired insurance portfolios (PVP) Deferred acquisition costs (DAC) Deferred origination costs (DOC) Total
  2011 HY 2010 YE 2011 HY 2010 YE 2011 HY 2010 YE 2011 HY 2010 YE
Balance as at 1 January
  16 20 1 986 2 299 31 19 2 033 2 338
Additions
  2 215 441 28 29 245 470
Amortisation
  –1 –1 –249 –503 –11 –14 –261 –518
Impairment
  –1 –3 –2 –4 –2
Effect of shadow accounting
  1 0 98 –32 99 –32
Foreign currency translation differences
  0 –3 –27 –217 0 –3 –27 –223
Balance as at end of period
  17 16 2 020 1 986 48 31 2 085 2 033


Present value of future profits (PVP) — The present value of future profits relates to portfolios of insurance contracts and investment contracts with discretionary participation acquired in a business combination or transfer of portfolios. It relates to contracts acquired in Germany, France and Switzerland and is amortised in proportion to gross profits over the effective life of the acquired insurance and investment contracts.

Deferred acquisition costs (DAC) — Certain acquisition costs relating to new and renewed insurance contracts and investment contracts with discretionary participation are deferred.

Deferred origination costs (DOC) — These costs are recoverable and are directly attributable to securing the right for investment management services within investment contract policies. They relate to contracts in Luxembourg and Switzerland.

Other intangible assets
In CHF million  
  Goodwill Customer relationships Brands and other Total
Notes  2011 HY 2010 YE 2011 HY 2010 YE 2011 HY 2010 YE 2011 HY 2010 YE
 
Cost
 
Balance as at 1 January
  1 745 1 947 316 370 230 261 2 291 2 578
Additions
  7 21 7 21
Additions from business combinations
17  9 2 11
Classification as assets held for sale and other disposals
  0 0 –3 –10 –3 –10
Foreign currency translation differences
  –22 –202 –6 –54 –6 –42 –34 –298
Balance as at end of period
  1 732 1 745 312 316 228 230 2 272 2 291
 
Accumulated amortisation and impairment
 
Balance as at 1 January
  –157 –157 –83 –63 –102 –120 –342 –340
Amortisation
  –15 –32 –2 –9 –17 –41
Classification as assets held for sale and other disposals
  0 0 3 7 3 7
Foreign currency translation differences
  2 12 1 20 3 32
Balance as at end of period
  –157 –157 –96 –83 –100 –102 –353 –342
 
Total other intangible assets as at end of period
  1 575 1 588 216 233 128 128 1 919 1 949


Goodwill — Goodwill represents the excess of the fair value of the consideration transferred and the amount of any non-controlling interest recognised, if applicable, over the fair value of the assets and liabilities recognised at the date of acquisition. Goodwill includes amounts relating to both the Swiss Life Group’s interest and the non-controlling interest in the business acquired in the case where non-controlling interest is measured at fair value. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on associates is included in the carrying amount of the investment.

In 2011, the Swiss Life Group acquired a majority share of Viveris REIM, Marseilles. The goodwill relating to this transaction amounted to CHF 9 million.

In CHF million  
  Lloyd Continental CapitalLeben Other
  30.06.2011 31.12.2010 30.06.2011 31.12.2010 30.06.2011 31.12.2010
Net carrying amount of goodwill
  287 287 149 149 21 12
Impairment losses
 


Goodwill relating to Lloyd Continental has been allocated to the “Insurance France” segment. Goodwill relating to CapitalLeben has been allocated to the “Insurance International” segment. Of the goodwill relating to other acquisitions, CHF 12 million (31.12.2010: CHF 12 million) has been allocated to the “Insurance France” segment and CHF 9 million (31.12.2010: nil) to the “Investment Management” segment as at 30 June 2011.

In CHF million  
  Insurance Switzerland Insurance Germany AWD
  30.06.2011 31.12.2010 30.06.2011 31.12.2010 30.06.2011 31.12.2010
Net carrying amount of goodwill
  81 81 259 265 778 794
Impairment losses
 


Goodwill relating to the acquisitions of AWD Holding AG and Deutsche Proventus AG has been allocated to the “Insurance Switzerland”, “Insurance Germany” and “AWD” segments.

Customer relationships — As at 30 June 2011 customer relationships comprise customer relationships relating to the “AWD” segment CHF 170 million (31.12.2010: CHF 186 million), “Insurance France” segment CHF 23 million (31.12.2010: CHF 25 million), “Insurance International” segment CHF 21 million (31.12.2010: CHF 22 million) and “Investment Management” segment CHF 2 million (31.12.2010: nil).

Brands and other — Consists of brands, trademarks, computer software and other intangible assets relating to AWD CHF 100 million (31.12.2010: CHF 103 million) and other CHF 28 million (31.12.2010: CHF 25 million).

 
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